In another round of rangebound action on Dalal Street, Indian equity benchmarks fell for a second straight day on Wednesday though recovered most of their intraday losses. Gains in oil & gas and automobile shares were offset by losses in financial and metal scrips. The Bank Nifty index fell 0.9 percent, extending losses to the third day in a row.
What do the charts suggest for Dalal Street now?
The Nifty50 index has formed a small positive candle on the daily chart with minor upper and lower shadows, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities. "Technically, this indicates the formation of a high wave type candle pattern, which suggests a confused state of mind among market participants," he said.
18,100 a tough hurdle
The index is unable to get past 18,100, which is a critical juncture for now, said Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments. "If the Nifty can keep above 18,100 for a couple of sessions, it can move up to 18,400, and then 18,600 (Targets 1 and 2). The 17,700-17,800 levels have become the new support for the market," he said.
Here are key things to know about the market before Thursday's session:
SGX Nifty
At 8:02 am on Thursday, Nifty futures trading on Singapore Exchange -- an early indicator of the Nifty50 index -- were down 46 points or 0.3 percent at 17,969.5, suggesting a negative start ahead on Dalal Street.
Global Markets
Equities in other Asian markets fell amid fears of inflation after data showed US consumer prices surged at their fastest pace since 1990 in October. MSCI's broadest index of Asia Pacific shares outside Japan was last down 0.4 percent. S&P 500 futures were up 0.2 percent.
Overnight on Wall Street, the three main indices tanked 0.7-1.7 percent,
What to expect on Dalal Street
The Nifty50's short-term trend still appears to be rangebound with a weak bias, according to HDFC Securities' Shetti.
As long as support at 17,900-17,850 is protected, there is the possibility of a bounce towards 18,150 in the short term. "A decisive move below the support is likely to drag the index down to 17,600," he added.
One can expect the headline indices to be rangebound as the broader market keeps inching downwards, according to Rahul Sharma, Co-Founder of Equity99. He believes any major news will trigger a move in the market.
"We don`t recommend any fresh buying in the market now," said Sharma, who expects the sugar, automobile, banking, IT and metal spaces to be in focus on Thursday.
Key levels to watch out for
Nifty50: Strong for the index is expected at 17,900, which, if broken, might be followed by further cushions at 17,775 and then 17,700, according to Sharma. Strong resistance is expected at 18,100, followed by 18,175 and then 18250, he said.
Bank Nifty: Strong support for the banking index comes in at 38,870, followed by next support at 38,700-38,625 levels. A tough hurdle is at 39,220, followed by further resistance at 39,350 and then 39500, he said.
FII/DII activity
Foreign institutional investors (FIIs) remained bearish on Indian equities, net offloading shares worth Rs 469.5 crore on Wednesday. Domestic institutional investors (DIIs), however, made net purchases of Rs 767 crore, exchange data showed.
Call/put open interest
The maximum open interest remains at the strike price of 18,200, and there is a high degree of accumulation at 18,100 and 18,500. The maximum put open interest stays at the strike price of 17,900, NSE data shows.
This suggests immediate resistance can be expected at 18,100-18,200 levels, followed by a major hurdle at 18,500, and support comes in at 17,900.
Long build-up
Here are five stocks that saw an increase in open interest as well as price, suggesting a build-up of long positions:
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| GSPL | 8,07,500 | 319.4 | 0.28% | 23.37% |
| BERGEPAINT | 47,43,200 | 779 | 0.09% | 16.21% |
| IBULHSGFIN | 3,55,22,900 | 245.6 | 0.22% | 11.96% |
| M&M | 1,35,42,200 | 918.95 | 2.22% | 11.56% |
| HDFC | 1,00,05,000 | 2,943.55 | 0.02% | 9.47% |
Long unwinding
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| ABFRL | 1,07,97,800 | 302.9 | -1.38% | -4.38% |
| CANBK | 4,56,30,000 | 237.4 | -2.63% | -4.15% |
| SUNTV | 1,30,63,500 | 573.5 | -1.04% | -2.10% |
| LTI | 5,75,400 | 6,857.70 | -0.31% | -2.01% |
| ASTRAL | 7,27,375 | 2,307.45 | -0.12% | -1.55% |
(Decrease in open interest and price)
Short-covering
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| TVSMOTOR | 74,41,000 | 754.65 | 3.32% | -11.31% |
| INDIAMART | 2,90,475 | 7,620 | 5.07% | -11.03% |
| COLPAL | 31,96,550 | 1,558.55 | 0.80% | -4.29% |
| EICHERMOT | 39,25,950 | 2,748.30 | 0.36% | -4.05% |
| CADILAHC | 1,87,48,400 | 503.6 | 0.70% | -2.78% |
Short build-up
| Symbol | Current OI | CMP | Price change (%) | OI change (%) |
| FSL | 27,40,400 | 180.45 | -9.59% | 102.94% |
| STAR | 29,63,925 | 498.3 | -10% | 21.43% |
| BHEL | 12,55,69,500 | 66.5 | -8.21% | 19.85% |
| BOSCHLTD | 1,55,750 | 18,765.15 | -0.64% | 19.26% |
| INDHOTEL | 1,53,81,600 | 216.25 | -1.68% | 17.62% |
(Increase in open interest and decrease in price)
52-week highs
HPCL, Bank of Baroda, Bahrat Forge, ACC, Manappuram Finance, Cholamandalam Investment, Bosch, Page Industries and Delta Corp were among the 30 stocks in the BSE 500 index -- the broadest gauge on the bourse -- that hit 52-week highs.
52-week lows
Two stocks in the index hit 52-week lows: Aarti Drugs and Strides Pharma Science.
Volatility gauge
NSE's India VIX index — which gauges the expectation of volatility in the near term — rose 1.9 percent to 16.3 on Wednesday, having jumped as much as 4.3 percent during the session.
(Edited by : Abhishek Jha)
First Published: Nov 10, 2021 5:44 PM IST
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